`
`Bis]
`
`JENNER & BLOCK LLP
`JULIE A. SHEPARD (SBN 175538)
`JShepard@jenner.com
`ANDREW G. SULLIVAN (SBN 301122)
`AGSuIlivan@Jenner.com
`SATI HARUTYUNYAN(SBN313138)
`SHarutyunyan@jenner.com
`EFFIONG K. DAMPHA (SBN 323554)
`EDampha@jenner.com
`633
`West 5tn Street Suite 3600
`Los Angeles, CA 90071 -2054
`Telephone:
`239-5100
`Facsimile:
`239-5199
`GIANNI P. SERVODIDIO (pro hac vice to be submitted)
`s(^enner.com
`D
`9^ird Avenue
`New York, NY 10022-3908
`Telephone: (212)
`891-1600
`Facsimile: (2\2)
`891-1699
`Attorneys for Plaintiffs
`UNITED STATES DISTRICT COURT
`CENTRAL DISTRICT OF CALIFORNIA
`WESTERN DIVISION
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`Case No.
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`COMPLAINT FOR COPYRIGHT
`INFRINGEMENT
`DEMAND FOR JURY TRIAL
`
`COLUMBIA PICTURES INDUSTRIES,
`INC.; AMAZON CONTENT
`SERVICES, LLC; DISNEY
`ENTERPRISES, INC.; PARAMOUNT
`PICTURES CORPORATION;
`WARNER BROS. ENTERTAINMENT
`INC.; UNIVERSAL CITY STUDIOS
`PRODUCTIONS LLLP; UNIVERSAL
`TELEVISION LLC; and UNIVERSAL
`CONTENT PRODUCTIONS LLC,
`Plaintiffs,
`
`22
`V.
`23 ALEJANDRO GALINDO and DOES 1-
`20,
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`Defendants.
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`COMPLAINT
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`
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 2 of 25 Page ID #:2
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`Plaintiffs bring this Complaint against Alejandro Galindo (“Galindo”) and
`DOES 1-20 (collectively with Galindo, “Defendants”) for direct and secondary
`copyright infringement under the Copyright Act (17 U.S.C. § 101 et seq.). This
`Court has subject matterjurisdiction pursuant to 28 U.S.C. §§ 1331, 1338(a), and 17
`U.S.C. § 501(b). Plaintiffs allege, on personal knowledge as to themselves and
`information and belief as to others, as follows:
`INTRODUCTION
`1.
`Defendants own and operate the infringing Internet Protocol television
`(“IPTV”) service commonly referred to as Nitro TV. Defendants offer Nitro TV
`subscription packages consisting of thousands of live and title-curated television
`channels available twenty-four hours a day, seven days a week, throughout the
`United States and abroad. The channels available on Nitro TV include many of the
`world’s most popular television programs and motion pictures such as The Office,
`Spider-Man: Homecoming, Toy Story 3, Star Trek Beyond, Homecoming and Joker,
`including works whose copyrights Plaintiffs own or exclusively control
`(“Copyrighted Works”). Plaintiffs and/or their affiliates have invested and continue
`to invest substantial resources and effort each year to develop, produce, distribute,
`and publicly perform their Copyrighted Works through legitimate market channels
`that in aggregate create a content ecosystem that is safe and reliable for consumers.
`Defendants’ unlawful conduct in operating Nitro TV directly and willfully subverts
`that ecosystem through pursuit of illicit profits from massive and blatant
`infringement of Plaintiffs’ Copyrighted Works.
`2.
`Upon paying Nitro TV’s subscription fees, subscribers are provided
`with credentials enabling access to an array of television channels, curated by
`Defendants, via the web-based Nitro TV platform as well as the Nitro TV application
`for use on mobile phones and smart TVs (eollectively the “Nitro TV Platforms”)
`which Defendants control. Through and in connection with these distribution outlets
`and systems they devised, architected, and control. Defendants illegally reproduce
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`2
`COMPLAINT
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 3 of 25 Page ID #:3
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`and publicly perform the Copyrighted Works in vast numbers without Plaintiffs’
`authorization and facilitate, induce, and contribute to infringement of the
`Copyrighted Works by others.
`3.
`Defendants’ ongoing and massive infringement is willful. Defendants
`know they are violating Plaintiffs’ rights to exploit the Copyrighted Works. Indeed,
`Defendants have actively selected the programming that they sell and stream
`illegally to subscribers on Nitro TV Platforms, notified Nitro TV subscribers when
`channels containing Plaintiffs’ Copyrighted Works have been added, asked
`subscribers for feedback regarding what television programs they would like
`Defendants to add to Nitro TV’s channel lineup, and apparently added television
`shows in response to subscribers’ feedback. Further, Defendants continued to offer
`their blatantly infringing service even after they became aware of a lawsuit against
`a similarly infringing IPTV service “Set TV Now” and have also continued to offer
`Nitro TV after the operators of the Set TV Now service were adjudicated to be
`infringing Plaintiffs’ copyrights and were enjoined.
`4.
`Defendants’ knowledge that their acts are illegal is further confirmed
`by Defendants’ concerted efforts to hide their tracks and operate anonymously. For
`example, the primary Nitro TV website used to obtain credentials to access the Nitro
`TV Platforms conceals registrant information from public access. Likewise,
`Defendants have not registered a Digital Millennium Copyright Act (“DMCA”)
`agent for any Nitro TV website they have operated. Moreover, as described further
`below, Galindo has advised Nitro TV subscribers on how to hide their locations from
`detection when using the Nitro TV Platforms.
`5.
`On top of selling Nitro TV subscriptions directly to users. Defendants
`have also developed an extensive and expanding web of Nitro TV resellers. As
`explained in more detail below, these resellers market and sell Defendants’
`infringing Nitro TV service throughout the United States and around the world. By
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`COMPLAINT
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 4 of 25 Page ID #:4
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`creating and cultivating their reseller program, Defendants have dramatically
`increased their ill-gotten gains flowing from infringement.
`6.
`Defendants’ entire business amounts to nothing more than a brazen,
`large-scale copyright infringement operation, undertaken to maximize ill-gotten
`profits for as long as possible. Plaintiffs have brought this action to stop Defendants’
`ongoing copyright infringement and to secure damages resulting from Defendants’
`infringing conduct.
`
`JURISDICTION AND VENUE
`This Court has subject matter jurisdiction over this Complaint pursuant
`7.
`to 28 U.S.C. §§ 1331, 1338(a), and 17 U.S.C. § 501(b).
`This Court has personal jurisdiction over Defendants. Defendants have:
`8.
`transacted business within California; transacted business with California
`companies, resellers, and consumers; committed the tortious act of copyright
`infringement within California; and have caused tortious injuries within California
`resulting from acts occurring outside California.
`9.
`Defendants operate the website TekkHosting.com (the “Website”).
`During the relevant time. Defendants have marketed and sold Nitro TV subscriptions
`to end users in California as well as TekkHosting Nitro Reseller Credits (which are
`exchanged for Nitro TV subscriber credentials) to resellers in California, via the
`Website and other interactive websites, and have profited from the sale of the same.
`10.
`In furtherance of their infringement. Defendants do business with
`California-based companies, including but not limited to (a) Cloudflare, Inc., a
`company that provides content delivery and domain name services and is
`headquartered in San Francisco, California; and (b) Facebook, which is
`headquartered in Menlo Park, California and which Defendants have used to
`advertise and promote Nitro TV subscriptions and to build the Nitro TV reseller
`network.
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`4
`COMPLAINT
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 5 of 25 Page ID #:5
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`11.
`Defendants’ unauthorized exploitation of the Copyrighted Works has
`caused harm to Plaintiffs in California. Defendants reasonably expected or should
`have reasonably expected their acts to cause harm in California because Plaintiffs
`maintain either headquarters or offices in California, and it is the location of a
`significant portion of Plaintiffs’ production and distribution operations.
`12.
`Venue is proper in this District pursuant to 28 U.S.C. §§ 1391(b),
`1400(a).
`
`THE PARTIES
`13.
`Plaintiff Columbia Pictures Industries, Inc. (“Columbia”) is a
`corporation duly incorporated under the laws of the State of Delaware with its
`principal place of business in Culver City, California. Columbia owns or controls
`copyrights or exclusive rights in content that it or its affiliates produce or distribute.
`14.
`Plaintiff Amazon Content Services, LLC (“Amazon”) is a corporation
`duly incorporated under the laws of the State of Delaware with its principal place of
`business in Seattle, Washington. Amazon owns or controls the copyrights or
`exclusive rights in the content that it or its affiliates produce or distribute.
`15.
`Plaintiff Disney Enterprises, Inc. (“Disney”) is a corporation duly
`incorporated under the laws of the State of Delaware with its principal place of
`business in Burbank, California. Disney owns or controls copyrights or exclusive
`rights in content that it or its affiliates produce or distribute.
`16.
`Plaintiff Paramount Pictures Corporation (“Paramount”) is a
`corporation duly incorporated under the laws of the State of Delaware with its
`principal place of business in Los Angeles, California. Paramount owns or controls
`copyrights or exclusive rights in content that it or its affiliates produce or distribute.
`17.
`Plaintiff Warner Bros. Entertainment Inc. (“Warner Bros.”) is a
`corporation duly incorporated under the laws of the State of Delaware with its
`principal place of business in Burbank, California. Warner Bros, owns or controls
`copyrights or exclusive rights in content that it or its affiliates produce or distribute.
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`COMPLAINT
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 6 of 25 Page ID #:6
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`18.
`Plaintiff Universal City Studios Productions LLLP (“UCSP”) is a
`limited liability limited partnership duly organized under the laws of the State of
`Delaware with its principal place of business in Universal City, California. UCSP
`owns or controls copyrights or exclusive rights in content that it or its affiliates
`produce or distribute.
`19.
`Plaintiff Universal Television LLC (formerly known as NBC Studios
`LLC) (“UT”) is a limited liability company duly organized under the laws of the
`State of New York with its principal places of business in Universal City, California
`and New York, New York. UT owns or controls copyrights or exclusive rights in
`content that it or its affiliates produce or distribute.
`20.
`Plaintiff Universal Content Productions LLC (formerly known as
`Universal Cable Productions LLC and Universal Network Television, LLC)
`(“UCP”) is a limited liability company duly organized under the laws of the State of
`Delaware with its principal place of business in Universal City, California. UCP
`owns or controls the copyrights or exclusive rights in the content that it or its
`affiliates produce or distribute.
`21.
`Plaintiffs have obtained Certificates of Copyright Registration for their
`Copyrighted Works. Exhibit A contains a representative list of titles, along with
`their registration numbers, as to which Defendants have directly and secondarily
`infringed, and continue to do so.
`22.
`Defendant Alejandro Galindo (“Galindo”) resides in or around
`Dickinson, Texas.
`Plaintiffs do not presently know the true names of the DOE defendants.
`23.
`Plaintiffs are informed and believe, and on the basis of that information allege, that
`each of the DOE defendants was in some manner proximately responsible for the
`events alleged in this Complaint and for the injuries and damages alleged herein.
`Plaintiffs will amend this Complaint to assert the true names and/or capacities of the
`DOE defendants when their names are ascertained.
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`COMPLAINT
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 7 of 25 Page ID #:7
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`BACKGROUND FACTS
`Plaintiffs and Their Copyrighted Works
`24.
`Plaintiffs and/or their affiliates produce and distribute a significant
`portion of the world’s most sought-after, critically acclaimed, and award-winning
`television programs and motion pictures.
`25.
`They also own or hold the exclusive U.S. rights (among others) to
`reproduce, distribute, and publicly perform the Copyrighted Works, including by
`means of streaming those works over the Internet to the public.
`26.
`Plaintiffs, either directly or indirectly through their affiliates, authorize
`the legitimate distribution and public performance of the Copyrighted Works in
`various formats and through multiple distribution channels, including, by way of
`example: (a) through cable and direct-to-home satellite services (including basic,
`premium, and “pay-per-view”); (b) through authorized, licensed Internet video-on-
`demand (“VOD”) services, including those operated by Amazon, iTunes, Google
`Play, Disney+, and VUDU; (c) through authorized, licensed Internet or over-the-top
`(“OTT”) streaming services, including those offered by Hulu TV, Fubo TV, Sling
`TV, YouTube TV, and others; (d) for private home viewing on DVD, Blu-ray, and
`UHD discs; (e) for exhibition in theaters; and (f) for broadcast television.
`Defendants’ Direct and Secondary Infringement of Plaintiffs’ Copyrighted
`Works
`Plaintiffs’ Copyrighted Works have been and are being streamed live
`27.
`to Nitro TV subscribers, as well as being provided on an on-demand basis, via the
`Nitro TV Platforms without Plaintiffs’ authorization. The Nitro TV Platforms—
`which compete with and undermine authorized cable and Internet on demand
`services-
`are available on a subscription basis and are controlled by Defendants,
`who profit from the sale of subscriptions to the Nitro TV Platforms.
`To market and promote the Nitro TV Platforms, Defendant Galindo
`28.
`the
`created
`NITROTV
`Official
`group.
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`7
`COMPLAINT
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 8 of 25 Page ID #:8
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`www.facebook.com/groups/Nitroiptv/ (“Nitro TV Facebook Group”),
`As the
`creator and an administrator of the Nitro TV Facebook Group, Galindo used it to
`market and promote Nitro TV subscriptions, to induce, encourage, and facilitate
`infringement, and to expand Defendants’ web of Nitro TV subscription resellers.
`Among other things, as reflected in the screen shot below. Defendants used this
`Facebook group platform to inform subscribers of Nitro TV’s new channels and
`program offerings, to provide subscribers with updates about the Nitro TV
`Platforms, and to invite subscribers to post on the Nitro TV Facebook Group page
`the TV shows they wanted added to Nitro TV.
`
`Alex Galindo shared a link.
`O Admin ■ October 8, 2017
`Refresh or restart your app. You will see Urban and Family Movies
`categories now un VOD. We have now started to add TV series and
`started with Game of Thrones all of Game of Thrones seasons are
`avaialble in VOD in 1080p Please post here TV shows you want next
`so that we can get an idea which ones to add next. Will leave
`comments open for this. Any issues or help request still need to be
`submitted via ticket through
`
`Client Area - TekkHosting
`TEKKHOSTING.COM
`
`[Cf Like
`
`OO 22
`
`29.
`Defendants have added title-curated television channels to Nitro TV’s
`channel lineup apparently in response to subscribers’ responses to requests for their
`feedback.
`
`W
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`W
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`8
`COMPLAINT
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 9 of 25 Page ID #:9
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`Defendants even used the Nitro TV Faeebook Group as a vehicle to
`30.
`advise Nitro TV subscribers how to hide infringing activity. For example, as
`reflected below, Galindo advised users to use a VPN, which would mask the users’
`unique IP address and location and enable access to restricted content:
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`31.
`Defendants use their Website, TekkHosting.com, as their primary
`interface through which users may receive access credentials to the infringing
`service. To obtain credentials allowing access to the programs via the unauthorized
`Nitro TV Platforms, a subscriber must either (a) purchase a subscription through the
`Website or other website controlled by Defendants or (b) purchase a subscription
`
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`COMPLAINT
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 10 of 25 Page ID #:10
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`through a Nitro TV reseller who has purehased TekkHosting Nitro Reseller Credits
`on the Website or through other means controlled by Defendants such as
`nitroiptv.com.
`Nitro TV subscriptions typically sell for $20 per month for two devices.
`32.
`Upon paying the monthly subscription fee, a new subscriber receives an email within
`approximately 24 hours providing the necessary Nitro TV credentials and a link to
`the Nitro TV application (the “App”) for the subscriber to download onto one or
`more devices (e.g., laptop or Android phone).
`Upon downloading the App and launching one of the Nitro TV
`33.
`Platforms with their subscriber credentials, Nitro TV subscribers have been greeted
`by the message: “Enjoy the best television channels with the best IPTV App!
`Defendants prompt Nitro TV subscribers go to Live TV or view their
`34.
`TV Guide:
`
`95
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`w
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`W
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`COMPLAINT
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 11 of 25 Page ID #:11
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`Upon selecting Live TV, Nitro TV subscribers are provided with a
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`collection of television programming curated by Defendants. The sheer volume of
`channels that Defendants have captured to provide on the Nitro TV Platforms
`requires organization by category or genre (e.g., Entertainment, Network, News,
`Sports, Kids, 24/7) as depicted in the screenshot below:
`I S cl>)) WebTV Player
`O ia
`WebTV PInyef nitro
`
`*
`
`L ^ -
`
`«-
`
`CC nitrovvebddnsoet
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`
`Defendants offer thousands of live television channels. The live
`television channel offerings are streamed contemporaneously with the original
`source of the telecast. In other words, the television program airing on a television
`channel (e.g., FX, the Disney Channel, Paramount Network) through an authorized
`source (e.g., a cable operator, satellite TV provider) is available on the Nitro TV
`Platforms at the same time. Many of these television channels include the
`Copyrighted Works.
`Upon clicking on one of the live television program offerings, the Nitro
`37.
`TV system assembled, operated, controlled, and managed by Defendants transmits
`the television program, including Plaintiffs’ Copyrighted Works, to the Nitro TV
`subscriber. Initially the television program will appear in a window on the right of
`
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 12 of 25 Page ID #:12
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`the viewing device. With the click of a button, the program may be maximized to
`fill the entire screen.
`Below are screenshots depicting just a couple of Plaintiffs’ Copyrighted
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`Works streamed by Defendants:
`
`3428 - 24/7: Spider-man Movies
`
`i
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`*
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`vVN
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`A
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`I *
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`* i
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`-d
`/“Til
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`^ow; No Program Found
`Next: No Program Founc:
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`w
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`■I
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`tt
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`I
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`EclMB^S
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 13 of 25 Page ID #:13
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`39.
`Reflecting their targeting of California subscribers, Defendants obtain
`and include on Nitro TV Platforms a collection of broadcast television networks
`throughout California such as the Los Angeles ABC, CBS, CW, NBC and FOX
`networks reflected below:
`
`V SMARTER'
`UVU L ? 1,411 AlW-
`Anyolcs CA
`US:CBSHDKCALL
`US; CBS HD Los Angeles CA
`US; NBC HD L> Angeli CA
`
`US;CWHDKTLACH5Lo5Angoll!5Cfl
`US: ABC HD L
`Anyeles CA
`US; FOX HD Los Angeles CA
`XJ
`WJi# My 1J KCOP L.
`- nsi US: ABC HD Loui:
`US: CBS HD Louisville KY
`US; FOX HD Louisville KY
`US; NBC HD Louisvi
`
`Defendants also offer a VOD service on the Nitro TV Platforms in the
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`form of Nitro TV’s “Catch Up” feature. When a Nitro TV subscriber selects the
`Catch Up” option (which is displayed in the lower right hand comer of the
`screenshot of Nitro TV in Paragraph 34, above), they are offered television
`programming from the prior two days. For example, a Nitro TV subscriber using
`this feature on a Monday would be shown a guide of what aired on Sunday and
`Saturday, and may select and watch a program that was telecast at a specific time
`and on a specific channel (e.g., Disney Channel, Paramount Network) during the
`prior two days. This type of VOD service is only possible by copying the
`programming.
`41.
`In addition to the collection of live television channels that Defendants
`have amassed. Defendants offer “24/7,” title-curated channels devoted to a single
`television series, motion picture, or franchise. By way of example, the 24/7 channel
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 14 of 25 Page ID #:14
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`dedicated to Season 1 of Peaky Blinders streams the episodes from Season 1 of that
`series in order. Similarly, the 24/7 channel dedicated to Marvel’s Captain America:
`The Winter Soldier streams that single movie repeatedly, as reflected from the
`screenshots below:
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`24/7 Captain America The Winter Soldier 4K
`
`24/7 4K UHD
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`24/7 Captain America
`The Winter Soldier 4K
`
`24/7 Backdraft 4K
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`24/7 Field of Dreams 4K
`UHD
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`24/7 The Grand Tour S2
`4K UHD
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`24/7 Dumbo 4K UHD
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`2A/7 Godzilla 4K UHD
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`7 CaptalR
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`EPG is not available to this channel.
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`Defendants offer some of Plaintiffs’ most popular Copyrighted Works
`42.
`through these 24/7 channels, such as Friends, Fleabag, Spider-Man motion pictures,
`and The Mentalist. To create and offer such channels. Plaintiffs’ Copyrighted Works
`have been reproduced and then assembled in a continuous loop for the purpose of
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 15 of 25 Page ID #:15
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`transmitting them nonstop to Nitro TV subscribers via the Nitro TV Platform—all
`without Plaintiffs’ authorization.
`As noted above, to expand Nitro TV’s subscriber base and their ill-
`43.
`gotten profits, Defendants developed and operate a Nitro TV reseller program,
`creating an extensive and expanding network of Nitro TV resellers. Defendants have
`dramatically increased their profits from infringement by selling TekkHosting Nitro
`Reseller Credits to resellers for credentials to access Nitro TV. In turn. Defendants’
`network of resellers market and promote Nitro TV to attract new subscribers to the
`illegal Nitro TV service. When a reseller sells a Nitro TV subscription, access
`credentials are provided to the Nitro TV Platforms in exchange for debiting the
`reseller’s credits.
`44.
`Volume discounts incentivize resellers to buy large quantities of credits
`and boost their subscription sales. For example, as reflected in the screenshot on the
`next page, a reseller buying 20 credits would pay $10 per credit, while a reseller
`purchasing 1,000 credits would pay less than $5 per credit. As a reseller typically
`sells Nitro TV subscriptions for $20 per month, a high-volume reseller will keep
`more from each subscription that it sells. Defendants, in turn, gain a larger number
`of subscribers paying them monthly fees for Defendants’ infringing service.
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 16 of 25 Page ID #:16
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 17 of 25 Page ID #:17
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`99
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`99
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`The reseller program plays a pivotal role in Defendants’ illegal
`45.
`commercial enterprise.
`Defendants’ web of resellers promotes Nitro TV as a
`substitute for authorized and licensed distributors (e.g., cable television providers,
`OTT streaming services). For example, Nitro TV is marketed as “simply the best
`and most reliable streaming service on the market, featuring over 2,500 HD
`streams.
`Nitro TV marketing also promotes that subscribers can access “NFL,
`NHL, MLB, NBA, Soccer, UFC & PPV, 99
`24/7 Channels & Premium Movies,” “US
`Regionals,” and “Fitness, Music, Latino, Spanish, and more!” And Nitro TV offers
`many different subscriptions for you and your household to enjoy.
`46.
`The sheer breadth of Defendants’ illegal IPTV operation and the harm
`to Plaintiffs is apparent. One of Defendants’ resellers recently boasted about the
`success of his resell efforts:
`Over 45,000 customers activated in the last 12
`months.” That is just one Nitro TV reseller. There are scores of them.
`Immediate and Irreparable Harm Threatened by Defendants’ Mass
`Infringement
`47.
`The scope of Defendants’ infringement of Plaintiffs’ Copyrighted
`Works is massive. Nitro TV is operating twenty-four hours a day, seven days a week
`throughout the United States and abroad, infringing Plaintiffs’ Copyrighted Works
`in vast numbers on a daily basis.
`48.
`Plaintiffs exercise their exclusive rights to license distributors and
`downstream services to develop and grow markets for their copyrighted content,
`particularly the emerging digital markets. Defendants’ conduct usurps Plaintiffs’
`control over the exercise of these exclusive rights, interfering with those distribution
`strategies.
`49.
`Defendants illegally and unfairly compete with live TV streaming
`service providers who pay for permission to retransmit broadcast television, offering
`live Internet TV while refusing to pay for the commercially bargained-for licenses
`that the law requires. As such. Defendants also interfere with Plaintiffs’ existing
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 18 of 25 Page ID #:18
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`relationships with legitimate online services. These legitimate services negotiate
`their licenses and abide by contractual restrictions. Defendants need not honor such
`contractual restrictions because they circumvent the licensing process altogether.
`This unfair competition undermines the legitimate market for content streamed over
`the Internet, which is a robust and growing part of Plaintiffs’ businesses and an
`important option to many consumers.
`50.
`Defendants are also contributing to consumer confusion regarding what
`is lawful and what is not by misleading customers to believe that the Nitro TV
`service is also legitimate. In this way, Nitro TV subscribers and potential subscribers
`may mistakenly view Nitro TV as a legal and sanctioned alternative to authorized
`distribution outlets and licensees, when it is not. This harms the market for legitimate
`services by drawing users away from Plaintiffs’ legitimate licensees.
`51.
`For these reasons. Plaintiffs bring this action to protect their rights and
`end Defendants’ wrongs.
`
`FIRST CAUSE OF ACTION
`(Direct Copyright Infringement)
`52.
`Plaintiffs incorporate herein by reference each and every averment
`contained in paragraphs 1 to 51 inclusive.
`53.
`Under Section 106 of the Copyright Action, Plaintiffs own the
`exclusive right to, among other things, make public performances of and reproduce
`their Copyrighted Works.
`54.
`Plaintiffs have never authorized Defendants to publicly perform or
`reproduce their Copyrighted Works.
`55.
`Defendants have infringed and continue to directly infringe thousands
`of Plaintiffs’ Copyrighted Works by violating Plaintiffs’ exclusive rights to make
`public performances of and reproduce the Copyrighted Works. Defendants, without
`permission or consent of Plaintiffs, have (a) publicly performed and will continue to
`publicly perform Plaintiffs’ Copyrighted Works, including but not limited to those
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`Case 2:20-cv-03129-JAK-GJS Document 1 Filed 04/03/20 Page 19 of 25 Page ID #:19
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`worked listed on Exhibit A hereto, by transmitting them over the Internet to Nitro
`TV subscribers; (b) reproduced and will continue to reproduce the Copyright Works
`in connection offering the “Catch Up” VOD service described above and creating
`24/7 channels; and (c) reproduced the Copyright Works in connection with offering
`other VOD services and the existing 24/7 channels.
`56.
`Defendants’ acts of infringement are willful, in disregard of and with
`indifference to Plaintiffs’ rights.
`As a direct and proximate result of the infringements by Defendants,
`57.
`Plaintiffs are entitled to damages and Defendants’ profits in amounts to be proven at
`trial.
`
`Alternatively, at their election. Plaintiffs are entitled to statutory
`58.
`damages, up to the maximum amount of $150,000 per infringed work by virtue of
`Defendants’ willful infringement, or for such other amounts as may be proper under
`17U.S.C. § 504.
`59.
`Plaintiffs further are entitled to recover their attorneys’ fees and full
`costs pursuant to 17 U.S.C. § 505.
`60.
`As a direct and proximate result of the foregoing acts and conduct.
`Plaintiffs have sustained and will continue to sustain substantial, immediate and
`irreparable injury, for which there is no adequate remedy at law. Unless enjoined
`and restrained by this Court, Defendants will continue to infringe Plaintiffs’ rights
`in the Copyrighted Works. Plaintiffs are entitled to injunctive relief under 17 U.S.C.
`§ 502.
`
`SECOND CAUSE OF ACTION
`(Contributory